{"id":1318,"date":"2025-07-23T16:04:19","date_gmt":"2025-07-23T16:04:19","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/alphabet-earnings-preview-can-cloud-growth-counter-rising-ai-search-competition\/"},"modified":"2025-07-23T16:04:19","modified_gmt":"2025-07-23T16:04:19","slug":"alphabet-earnings-preview-can-cloud-growth-counter-rising-ai-search-competition","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/alphabet-earnings-preview-can-cloud-growth-counter-rising-ai-search-competition\/","title":{"rendered":"Alphabet Earnings Preview: Can Cloud Growth Counter Rising AI Search Competition?"},"content":{"rendered":"<div>\n<p>In recent days, Alphabet (NASDAQ:)\u2019s stock price shows that buyers are aiming to push it back toward its all-time high of around $207 per share. The upcoming quarterly earnings report, expected after today\u2019s US market close, could help drive that move if the results are strong.<\/p>\n<p>The tech giant\u2019s earnings will offer key insights into how it\u2019s handling rising competition in AI and search. However, the market is optimistic ahead of the report. If Alphabet beats expectations again, bulls may take control through the end of July, assuming broader economic conditions remain supportive.<\/p>\n<p>Investors are also watching the outcome of Alphabet\u2019s antitrust cases, especially those involving the Chrome browser. A court decision is expected next month, and one possible outcome could be a forced sale of Chrome. However, this risk appears to be at least partly reflected in the stock\u2019s current price.<\/p>\n<h2><strong>Alphabet\u2019s Fundamentals Remain Strong, but Headwinds Persist<\/strong><\/h2>\n<p>Advertising is still Alphabet\u2019s main source of revenue, but relying too heavily on it carries risks\u2014especially with growing competition in search from generative AI tools. To reduce this dependence, the company is using its strong free cash flow to invest in artificial intelligence.<\/p>\n<p>A key focus is Google Cloud, Alphabet\u2019s flagship AI offering. With its experience, resources, and vast data, Alphabet is well-positioned to lead in this space. Google Cloud revenue is expected to grow 26% in 2025, reaching $13.12 billion.<\/p>\n<p>YouTube also remains a valuable asset, offering a large user base and steady revenue that adds stability to the business.<\/p>\n<p>In short, investors should watch how Alphabet grows revenue not just from advertising, but also from AI, where spending is likely to rise in the coming years\u2014alongside tracking core financial metrics.<\/p>\n<h2><strong>The Bar Keeps Rising for Alphabet<\/strong><\/h2>\n<p>In recent years, Alphabet has reported a consistent streak of rising earnings per share (EPS), with the last quarter showing a strong performance that included an EPS surprise of nearly 40%. This quarter, EPS is expected to be lower year-on-year, but we should still see solid quarter-on-quarter growth\u2014unless there are any unexpected developments.<\/p>\n<p><\/p>\n<p>Revenue is also expected to continue its upward trend and could surpass $94 billion if results come in above expectations.<\/p>\n<h2><strong>Is $200 the Next Stop for Alphabet?<\/strong><\/h2>\n<p>The uptrend in Alphabet (Class A) stock appears to be gaining momentum, as shown by the steeper slope of the current short-term trend line. If the market reacts positively to the upcoming earnings report, the first key target for buyers is likely the psychological level of $200 per share.<\/p>\n<p><img decoding=\"async\" title=\"Google Stock Price Chart\" src=\"https:\/\/d32-invdn-com.investing.com\/content\/6d95106553947fc997753e385a65b14b.jpg\" alt=\"Google Stock Price Chart\" align=\"bottom\" border=\"0\"\/><\/p>\n<p>From a technical perspective, the all-time high near $206 per share could act as resistance and trigger at least a temporary pullback if tested. On the downside, the key support levels to watch are the rising trend line and the $180 mark.<\/p>\n<p>****<\/p>\n<p>Whether you\u2019re a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop.<\/p>\n<p><strong>Subscribe now for up to 50% off amid the summer sale and instantly unlock access to several market-beating features, including:<\/strong><\/p>\n<ul style=\"list-style-type: none;\" type=\"disc\">\n<li><strong>ProPicks AI:<\/strong> AI-selected stock winners with proven track record.<\/li>\n<li><strong>InvestingPro Fair Value: <\/strong>Instantly find out if a stock is underpriced or overvalued.<\/li>\n<li><strong>Advanced Stock Screener:<\/strong> Search for the best stocks based on hundreds of selected filters, and criteria.<\/li>\n<li><strong>Top Ideas:<\/strong> See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying.<\/li>\n<\/ul>\n<p><img decoding=\"async\" title=\"Summer Sale\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/pic8c440547d05ee6a8a2581ec38976f8c8.png\" alt=\"Summer Sale\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><strong>Disclaimer:<\/strong> This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk is at the investor\u2019s own risk. We also do not provide any investment advisory services.<\/p>\n<\/div>\n<p><script id=\"fb_pixel\" data-nscript=\"beforeInteractive\">!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https:\/\/connect.facebook.net\/en_US\/fbevents.js');<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recent days, Alphabet (NASDAQ:)\u2019s stock price shows that buyers are aiming to push it back toward its all-time high of around $207 per share. The upcoming quarterly earnings report, expected after today\u2019s US market close, could help drive that move if the results are strong. The tech giant\u2019s earnings will offer key insights into [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1319,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[338,339,344,341,213,340,214,342,343],"class_list":["post-1318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-alphabet","tag-cloud","tag-competition","tag-counter","tag-earnings","tag-growth","tag-preview","tag-rising","tag-search"],"_links":{"self":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/1318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/comments?post=1318"}],"version-history":[{"count":0,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/1318\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media\/1319"}],"wp:attachment":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media?parent=1318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/categories?post=1318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/tags?post=1318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}